WHY THE RICH GET RICHER?

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THEY DON’T WASTE ANY MONEY

The idea of saving money is a boring idea of becoming rich.

Honestly speaking, this is the only way to do it – unless you have something up your sleeve (rich family), then you are at the wrong place.

It’s the only way because it does not matter how much money you make, but if you’re someone who does not spend or invest wisely, you’re not gonna end up becoming rich.

Look at some of the rich and famous people who made millions (or billions) worth of dollars, but ended up bankrupt. How is that?

It doesn’t matter how much money you make as long as you don’t know how to keep it.

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THEY LOOK AT THEIR NUMBERS DAILY

I personally know entrepreneurs who rarely look at numbers daily.

This is a bad habit.

Numbers don’t lie. It gives you a quick insight on where does your business (or personal finance) will end up heading.

This may sound trivial to some – reality is, knowing the figures gives you better understanding of your financial situation so you can make better decisions; short and long term-wise.

If your sales increases, look at expenses you did that made sales go up.

If your sales hit rock bottom, look at ways to cut your expenses that don’t seem to support sales.

And so on. You get the idea.

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THEY WORK SMARTER, NOT HARDER

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The idea hard work equals results no longer applicable these days. And the rich know this too well.

Yes, you still need to put in the effort – but it needs to be smart effort.

If you’ve been doing the same thing over again without much results, the answer is not to do more of the same thing.

Instead, you should start finding alternatives.

This is why successful people often continue to learn and be adaptable; so they can easily adopt new ideas or methods to get results.

THEY MAKE THEIR MONEY WORK FOR THEM

People often like to say rich people are lazy. It’s far from the truth.

Rich people know that they don’t always want to work and not to enjoy the success they have accomplished.

So, they are always on the move to make their money to do the work such investing in companies, stocks and so on.

This is how most rich people stays rich despite of always looking like they don’t work at all.

There’s nothing wrong with that. Who wants to work for their entire life?

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THEY VALUE MONEY MORE THAN OTHERS

There’s nothing wrong about valuing money more than everything else.

You worked hard for it. Of course you’re going to value it more than most other things.

If this doesn’t sound like you, then you’re going to have a hard time to get rich – or to stay rich.

Most people like to spend money every time they get paid. They like to spend on things that don’t make much sense.

They don’t save and invest. How can they?

This spending habit will leave them constantly living paycheque to paycheque; ends up having to work for their entire lives.

Rich people, on the other hand, knows how money works. They don’t spend their earned income.

Instead, they save a portion of it to invest. Once that investment bears fruit, only then they’ll start spending.

This is why rich people value money more than others.

THEY BENEFIT FROM HAVING GOOD CREDIT

I don’t think it’s necessary for me to talk in depth about having good credit, do I?

In short, good credit means easy access to financial loans, government grants and so on.

Access to such financial support is crucial if you wish to own a house, start a business et cetera.

Let’s move on. 

THEY DON’T KEEP UP WITH JONES

There is a saying that “Poor people like to talk about others, while rich people like to talk about ideas.”

No. I did not say it.

But I can support by talking from my experience itself.

If you pay enough attention, people who are doing well (or well on their way) rarely talk about others. We rarely gossip.

On the other hand, when I talk to average folks, they seem to prefer talking about things that don’t benefit.

Sometimes, I can even sense envy or hate (or both) in these conversations – which is another tell-tell sign of a person who will struggle in life. No offense.

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THEY PRIORITIZE SUCCESS OVER LEISURE

This does not necessarily means you should enjoy less leisure time. Nobody wants that.

Instead, create tasks and schedule them where you will only work around specific time and day(s).

Then, use the remaining time (or days) to enjoy some leisure activities ONLY AFTER YOU’VE COMPLETED YOUR TASKS.

This is what I mean by prioritizing success over leisure.

CONCLUSION

For closing, the most important thing is to, quote Nike ‘Just Do It’.

People tend to read and think a lot. We like to, sometimes, even over-complicate things. DON’T.

Just do it. Full stop.

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How The Rich Spend Their Money And Why You Should Start Doing It Too

Is it true that the rich spends differently than poor people?

The answer is Yes.

Today, I’m gonna share with you how the rich people spend their money and why you should do it too.

Poor People

Lets start with how poor people spends their money.

For poor people, when they receive their paycheque, lets say at $10,000 for demonstration purpose, they’ll immediately use the money to pay off their monthly bills.

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$5,000 into paying things which are necessary.

$4,000 into buying things they want.

$1,000 into savings (if lucky).

So whats wrong with this?

At the end of every month, poor people often ends with networth of about $1,000 if lucky.

This is what the line ‘Live paycheque to paycheque’ means.

Successful People

Successful people, on the other hand, when they receive their paycheque, spends differently.

Firstly, successful people have different philosophy when it comes to money management.

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They’ll put aside 30% for monthly commitments such as mortgages, car loans, etc.

And the remaining 70%, they’ll put aside for investment. Some successful people are even rumored to be able to invest up to 90% of their earned income.

0% will be put aside on things they want such as luxury goods or eating in restaurants

Once the money invested bears profits, they’ll use 10% from the dividends to buy luxury goods and so on.

In this way, their total networth remains between $6,000 – 7,000 plus dividends.

Now imagine they repeat this spending habit for years to come – this is the secret to true wealth.

My Two Cent

It’s clear, successful people spend with a long term plan in mind.

They continue to add more money into investment to be able to grow their net worth and also able to live off dividends alone

They know earned income is not permanent, therefore, don’t rely on it completely. In case of economic downturn, they’ll always have cash to rely; such as their other sources of income and savings.

On the other hand, the poor relies completely on their earned income. If they lose their jobs, they have nothing else to rely on.

Let me know what you think about the article in comment section below. I’d really like to know what you think about it

Keep grinding and hustling. Don’t forget to execute!

7 Things The Rich Do That The Poor Don’t – Why You Are Still Broke

You put in the effort. You tried saving money but then, you often find yourself with little money at end of each month. You wonder where did it all go wrong.

Today, I’m gonna tell you the 7 Main things the rich do that the poor don’t.

1. The rich focus on net worth, not working income

Poor people often talk in terms of hourly pay, whereas wealthy people know that an hourly income is not nearly as important as someone’s net worth.

One can earn quite a lot of money per hour, but if they don’t learn to keep any of it, they will still be broke in the end.

The rich person knows that a large net worth will net many opportunities and will create more wealth in the future.

2. Create multiple income flows

The more money you have, the easier it is to make more money.

And the easiest and fastest way to make more money is to have multiple income streams – a no-brainer.

That way you always have money coming in and can use the excess income to invest in new income flows. This, in a nutshell, is the primary way the wealthy stay wealthy.

There are two basic forms of income: active income, in which you work for the money you make, and passive income, in which payment isn’t directly tied to the number of hours you work.

Passive income includes rental property, dividend stocks, index funds, writing a book or creating an app, all of which will bring in a steady flow of income from sales or royalties.

3. Invest

Rich people make their money work for them. They know that investing is the key to growing their finances.

While saving money for a rainy day is important, your investments are going to do the heavy lifting to help you become wealthy.

While it’s good to put your money in savings, you need to put most of your money into work i.e. investments.

If you are new to investing, I’d recommend start putting your money into low risk investment. Start small, get a feel to it. It goes without saying you need to do your homework before taking the plunge.

4. The Wealthy Keep a To-Do List – They Stay Organized

Being organized by keeping a to-do list is one of the habits of the wealthy that may seem too simple to be true.

In reality, by staying organized, it helps you to remain focused on important things that will help you to reach your target. In a nutshell, keep your to-do list lean and simple.

Years back, Warren Buffett suggested his pilot to list down top 25 things he wants to achieve in life. Then, he told the pilot to only circle top 5 and focus on it.

Also, keep in mind there’s a research shows that 81% of the wealthy keep a to-do list, while only 19% of the poor will.

5. The Wealthy NEVER Stop Educating Themselves

How often do you hear that the best investment is to invest in yourself?

That’s because the wealthy READ! They will read materials related to their career or education to better themselves.

There are a number of successful people share how reading everyday keeps them on their toes. They continue to learn every day even after achieving success.

In this modern age, knowledge grows and distributed very quickly – globally. To continuously educate yourself is the only way to remain relevant in your industry.

6. The rich associate with positive, successful people

Rich people know that attitude is everything. If they continuously hang out with people that complain about the weather, bad-mouth the government, and speak negatively about the state of the economy, then they will likely start doing the same thing!

If, however, these same people start hanging around individuals that continuously talk about success, opportunity, and the positive things in life, chances are that they will see the world from an entirely different perspective!

Take for example the immigrants that come into the States. They are more likely to end up becoming millionaires compared to those born and bred in USA.

Reason?

US citizens often complain over the little of things, while immigrants see the nation as the land of opportunities. In a nutshell, it comes down to the “glass half-filled or half-empty” argument.

7. LEARN FROM OTHERS’ MISTAKES

Why make a mistake if you don’t have to?

Unlike the poor, rich people tend to see things in the long run. Hence, they plan and budget relentlessly. By having a plan, the rich has a clearer picture of their financial status. This leads them able to spend, save and invest wisely. The opposite can be said for poor people.

On top of that, the rich often educate themselves as much to reduce the risks involve in decision making,

When the rich makes mistakes they learn from them. By networking with other successful rich people they can also learn from mistakes that their peers make too.

In fact, these people are also perfect business partners since they have seen and done it all – so to speak.

My Two Cent

I do know this article sounds like bashing the poor. I’m not.

I’m just sharing with you how exactly it is not to be poor, and as you can see – it’s not ‘rocket science’ as claimed by many ‘business gurus’ out there.

If you read my articles enough, you’ll soon realize that becoming wealthy comes mainly down to two things; you gotta work hard (there’s no shortcut) and to sacrifice your wants for long term success.